Great Expectations For 4K
Bauer: We typically don’t comment on the profitability of a particular category, but are more concerned at this point that consumers are educated on the options that are out there so they will purchase the right product for their specific needs. Based on our history of producing award-winning TVs with critically acclaimed picture quality—something that continues in 2014 with our Life+Screen AX800 UHD TV, we are confident that educated consumers will continue to seek out Panasonic when they are in the market for UHD and HDTVs.
Larson: I have no doubt that UHD can be a positive in the industry for quality retailers. Retailers that can demonstrate and sell UHD will be rewarded with higher selling prices as well as consumers that are delighted with the premium experience that these sets deliver. Research shows that people tend to hang on to a TV for nearly seven years. If we can show them what they are investing in, they will make the jump.
Ramirez: 4K UHD will certainly help increase ASPs—
revenue—in the industry. That’s guaranteed. In regard to profitability, that’s a harder question. It really depends on how the industry treats their amazing new technology. 4K creates a better user experience; that’s clear. And I believe if consumers see and understand that, they’ll pay more for it. If we as an industry, manufacturers and retailers, do our jobs well, we tell the story, we show the picture quality, then the consumers will pay, will step up, will buy, and it can help the industry. I’m really hoping that, cumulatively, we will do that.